Agreement with YPF marks Statoil’s entry into Argentina
Statoil (ticker: STO) and YPF announced today an agreement to explore hydrocarbons in the Vaca Muerta shale. This represents Statoil’s entry into Argentina.
Under the terms of the agreement, Statoil will enter the Bajo del Toro license block with a 50 percent interest. YPF will retain a 50 percent share and will remain the operator. Statoil will recognize YPF’s past costs incurred in the block and will fund 100 percent of the cost of certain activities in the future.
Bajo del Toro represents almost 39,000 acres in the Neuquén Basin in west-central Argentina. The Vaca Muerta shale in the Neuquén Basin is one of the most promising shale plays in the world. Tremendous amount of oil and gas in place and generally favorable governmental attitudes toward development have made the play very attractive. In addition, the Vaca Muerta benefits from generally cheaper acreage than most U.S. unconventionals, so it is easier for a company to acquire a sizeable position. It is one of the few international shale plays that has seen successful development, and many major players are investing money.
In June 2016, for example, ExxonMobil’s then-CEO Rex Tillerson stated that the company may spend up to $10 billion in developing the Vaca Muerta in the next few decades. According to the EIA, the formation holds over 16 billion barrels of shale oil and 308 Tcf of shale gas.
Yacimientos Petrolíferos Fiscales, YPF, is Argentina’s national oil company and has major positions in the Vaca Muerta. YPF Chairman Miguel Angel Gutierrez commented on the agreement, saying “Bringing in a new international player like Statoil into the country shows confidence in Vaca Muerta as a promising shale play and in YPF as a leading operator. We are pleased to expand the cooperation between both companies.”
By Oil and Gas 360
More Top Reads From Oilprice.com:
- Texas Shale Hit Hard By Hurricane Harvey
- Looming Gas Shortage: “Imports Can’t Make Up For This”
- Oil Markets React Stoically To Strong Crude Inventory Draw